Klarna's Banking Ambition: From Buy Now, Pay Later to Global Digital Bank

Klarna, a Swedish fintech company, is planning to complete its IPO in September and is shifting its focus to building a global digital bank. The company, which has over 100 million active customers, plans to offer debit cards and provide a full suite of banking services. Klarna aims to disrupt traditional banks and replicate its successful business model in Sweden, where it has a banking license and 80% of the adult population are customers. The company has amassed $9.5 billion in consumer deposits and is targeting the US and European markets with its new banking push.

Klarna Group Plc, a Swedish fintech company, is planning to complete its initial public offering (IPO) in September, following a brief hiatus due to global market volatility [1]. Founded in 2005, Klarna has evolved from a European clone of PayPal to become the largest provider of short-term "buy now, pay later" consumer loans. With over 100 million active customers, mostly in the US and Europe, Klarna is now shifting its focus to building a global digital bank.

The company, which was initially planning to raise at least $1 billion through its IPO, has pivoted its strategy to focus on expanding its banking services. Klarna aims to replicate its successful business model in Sweden, where it has a banking license and 80% of the adult population are customers. The company has amassed $9.5 billion in consumer deposits, which it uses to fund its credit offerings [1].

Klarna's new banking push includes plans to offer debit cards in the US this summer and across Europe this fall. The company also aims to provide a full suite of banking services, including savings accounts. Klarna's goal is to disrupt traditional banks and attract customers who feel that credit cards are "rigged against them" due to their high costs and opaque charges [1].

The company's IPO is a significant milestone for its founder, Sebastian Siemiatkowski, who has been steering Klarna through various challenges and reinventions since its inception. Despite the turmoil caused by the US president's tariff threats, Klarna's IPO is expected to be well-received by investors, who are increasingly bullish on fintech companies [1].

Klarna faces stiff competition in the digital banking space, with rivals such as Nubank and Revolut seeking to capture a larger share of the market. However, Klarna's strong brand, extensive user base, and innovative payment solutions give it a competitive edge [2].

References:
[1] https://www.bloomberg.com/news/articles/2025-08-11/klarna-revives-its-ipo-but-this-time-as-a-bank
[2] https://fintechmagazine.com/news/top-10-fintech-companies-globally